Microsoft Xbox head denies rumors of division sale

Asha Sharma, head of Microsoft’s Xbox division, has denied rumors that the gaming unit is being prepared for sale or a spin-off. In an interview with the New York Times, Sharma stated, “Xbox is not for sale,” despite ongoing restructuring efforts within the division.

Since her appointment approximately one year ago, Sharma has overseen significant changes, including large-scale layoffs affecting nearly 2,000 employees, the closure of several studios, and the cancellation of various game projects. These moves have fueled speculation that Microsoft might be streamlining the division to facilitate a sale or transform it into an autonomous entity or joint venture.

Financial data highlights the challenges facing the division. Excluding Activision Blizzard King, Microsoft has invested over $20 billion into Xbox content and hardware over the last five years, while annual revenues decreased by nearly $500 million during that same period. The division reported a 3% margin in its last fiscal year. Sharma emphasized a long-term vision, stating the company will seek the “right partnerships” and “operating model” to ensure the business's success.